Executive Summary: Valuing a payment processing business requires more than applying a simple EBITDA multiple. Buyers and investors examine processing volume, net revenue take rate, merchant churn, portfolio quality, and the company’s operating model, whether it functions as an ISO, a PayFac, or a full-stack processor. Because revenue in this sector is often recurring but […]
Executive Summary: A Managing General Agent (MGA) is typically valued on the economics of premium flow, underwriting performance, and the strength of carrier relationships, not just on reported earnings. In specialty insurance M&A, buyers pay close attention to gross written premium, loss ratio discipline, underwriting authority, renewal quality, and how defensible the MGA’s binding authority […]
Executive Summary: Private equity firm valuation is a specialized process that looks beyond traditional earnings metrics to assess the economics of management fees, carried interest, fund performance, and the durability of the platform. For Los Angeles business owners, investors, and advisors, understanding how a PE management company or general partner (GP) stake is valued is […]
Executive summary. For insurance agencies, commission revenue quality is often more important than raw revenue size. Buyers and valuation professionals look closely at whether commissions are recurring, diversified, retained, and predictable enough to support future earnings. Contingency commissions, direct bill versus agency bill structures, carrier concentration, and client retention all affect how much of today’s […]
Executive Summary: Insurance agency valuation is driven by the quality and durability of recurring revenue, not just topline size. For independent agencies, buyers and investors typically focus on revenue multiples, commission income quality, retention rates, carrier appointment breadth, and contingency income to determine how predictable future earnings will be. In practice, agencies with strong client […]
Wealth management firm valuation requires more nuance than a standard small business appraisal because revenue is often recurring, client relationships are durable, and value depends on both current cash flow and the stability of future assets under management. For registered investment advisers (RIAs) and advisory practices, buyers typically assess value using assets under management, revenue […]
Investment banks and boutique advisory firms are valued differently from many traditional businesses because their worth depends less on physical assets and more on the durability of relationships, the quality of recurring fee revenue, and the productivity of individual bankers. For Los Angeles owners, buyers, and investors, understanding these drivers is essential because a firm […]
Deposit base quality can have a major impact on bank valuation multiples because it directly influences a bank’s funding cost, earnings stability, and long-term franchise strength. In an acquisition analysis, buyers often pay a premium for core deposits that are sticky, low-cost, and heavily weighted toward noninterest-bearing demand accounts. A bank with a stable deposit […]
Executive Summary: Community bank valuation is driven by a combination of balance sheet strength, profitability, and the quality of the deposit franchise. In bank M&A, buyers most often look at price-to-book, price-to-tangible-book, and price-to-earnings multiples, then adjust those benchmarks for asset quality, deposit mix, funding costs, loan growth, and interest rate sensitivity. For Los Angeles […]
Executive Summary: Multfamily real estate developer valuation focuses on what a developer owns, what it can deliver, and what market buyers believe that future pipeline is worth. For apartment developers, value is often driven less by current revenue and more by the economics of the development pipeline, including land basis, projected cost per unit, expected […]